Texas Oil & Gas Association Memo Explained Current Law on Counties’ Authority and Roads — TXOGA Did Not Threaten Lawsuit and Believes Current Law May Need to Change so Counties Receive Necessary Funding

The following can be attributed to Deb Hastings, executive vice president of the Texas Oil & Gas Association (TXOGA):

In April 2012, the Texas Oil & Gas Association prepared a reference memo describing current law with regard to counties’ authority to assess fees or require agreements with oil and gas operators. The Texas Oil & Gas Association has not threatened to sue any county regarding transportation fees.

The roads situation is serious in South Texas and elsewhere where oil and gas development is expanding. Funding is necessary to repair and improve existing roads. The Legislature will determine the source of that funding. A change in law may be required to re-figure how funds are allocated to local municipalities. For example, oil and gas operators paid more than $9 billion in taxes and royalties to the state in fiscal 2011. We need to assess if those funds are getting into the right hands for emerging needs.

The Texas Oil & Gas Association is committed to helping to develop a solution to repair, maintain and strengthen the infrastructure necessary to support the tremendous economic activity that is generating thousands of jobs and billions of dollars in state and local tax revenue.